Supermarket Income Reit Plc · LSE:SUPR
Supermarket Income Reit — FY2025 Earnings Presentation
41 slides from Supermarket Income Reit's earnings presentation, Sep 17, 2025
Slide 1: A Transformational Year
A TRANSFORMATIONAL YEAR SUPR Primary 1 #405268 FULL YEAR RESULTS FOR THE 12 MONTHS TO 30 JUNE 2025 17 SEPTEMBER 2025 Sainsbury’s, Huddersfield
Slide 2: Agenda and Presenting Team
Agenda and Presenting Team Welcome and introduction Financial results Grocery market Nick Hewson Rob Abraham SUPR Primary 1 Chair CEO #405268 Portfolio Investment market Q&A Mike Perkins CFO 2
Slide 3: A transformational year
A transformational year Demonstrating Demonstrating Demonstrating Alignment Asset Values Affordable Rents SUPR Primary 1 #405268 Delivering for shareholders Transacting above book Lease renewals proving through cost efficient values and recycling capital affordability at 4% rent to internalised mana
Slide 4: Delivering key strategic objectives
Delivering key strategic objectives Lease Renewals +13% above Valuer’s ERV Internalisation Targeting <9% EPRA cost ratio Strategic Joint Venture £403m joint venture with Blue Owl Capital SUPR Primary 1 #405268 Capital Recycling £265m net proceeds, £81m acquisitions Debut Bond Issuance £250m 6-year u
Slide 5: Compelling investment case
Compelling investment case Operating in a defensive sector, resilient through economic cycles Strong tenants providing stable, predictable income: 11-year WAULT Portfolio of mission critical last mile omnichannel fulfilment hubs SUPR Primary 1 #405268 Growing LFL store sales provide sustainable rent
Slide 6: Financial Results
Financial Results SUPR Primary 1 #405268 Photo: Tesco, Colchester 6
Slide 7: Financial highlights
Financial highlights £115m 13.0% 6.12p +7.3% -170bps +1.0% Net rental EPRA Cost Dividend income(1) Ratio per share £1.6bn 87.1p 7.2% Portfolio EPRA NTA Total Value(1) per share Accounting Return Past performance is not indicative of future results Photo: Tesco, Scunthorpe All figures as at 30 June 2
Slide 8: 7.3% increase in net rental income
7.3% increase in net rental income(1) 8.6 115.1 (2.2) (0.4) 100% 1.9 Occupancy 107.2 3.4% avg. Net rental income (£m) rental uplift(2) SUPR Primary 1 100% #405268 Rent collection 99.3% Gross to net rent ratio June 2024 LFL net Acquisitions and Disposals Other June 2025 rent annualisation Past perfor
Slide 9: Movement in passing rent
Movement in passing rent 7.4 113.1 (3.5) 102.7 £200m (14.3) Net proceeds(1) Passing rent (£m) SUPR Primary 1 #405268 6.6% Disposal NIY(2) 30 June LFL growth & Disposal: Disposal: 30 June 2024 Acquisitions outright JV at share 2025 3% 37% 31% Premium to book value(3) LTV LTV Past performance is not i
Slide 10: Internalisation delivering material cost savings
Internalisation delivering material cost savings 14.7% 13.0% 13.0% EPRA Cost Ratio FY25(1) EPRA Cost Ratio (%) SUPR Primary 1 <9.0% #405268 Target EPRA Cost Ratio <9.0% 35% Estimated cost reduction FY24 FY25 Target Past performance is not indicative of future results 1) Including direct vacant prope
Slide 11: One of the lowest EPRA cost ratios in the sector
One of the lowest EPRA cost ratios in the sector 62.0% EPRA cost ratio (%) SUPR Primary 1 #405268 13.0% <9% 7.8% Peer group consists of FTSE 350-listed REITs. All figures sourced from latest company accounts where disclosed. EPRA cost ratio includes direct vacancy costs 11
Slide 12: EPRA earnings per share
EPRA earnings per share Core earnings up 0.1p / 1% 0.1p 0.9p 6.1p (0.9)p 6.0p Pence per share (0.2)p SUPR Primary 1 #405268 30 June 2024 LFL growth Admin cost Finance Disposals 30 June 2025 (1) (2) and acquisitions savings costs Past performance is not indicative of future results 1) Administrative
Slide 13: EPRA NTA per share
EPRA NTA per share 6.0p Asset management offsets cost of internalisation 0.5p 0.8p 0.9p 87.0p 87.1p (1.7)p (0.3)p (6.1)p Pence per share SUPR Primary 1 #405268 30 June 2024 EPRA Dividends Realised Regears Unrealised Internalisation Other 30 June 2025 earnings paid gains gains 7.2% total accounting r
Slide 14: Refinancings materially improve average maturity
Refinancings materially improve average maturity Maturity profile as of 30 June 2024(1) (£m) Maturity profile today(1,2) (£m) 2.0 yrs 3.9 yrs maturity maturity 287 SUPR Primary 1 #405268 6 40 6.2 years 250 9 fixed at 5.0% 75 261 224 210 167 97 105 105 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY25 FY2
Slide 15: Debut bond issuance: positioned for growth
Debut bond issuance: positioned for growth £250m 6-year 100% drawn debt now Issuance Term unsecured(1) Further diversification of the capital structure 115bps 5.125% SUPR Primary 1 Extends debt maturity profile #405268 Margin over Gilts Coupon Lowers medium-term borrowing costs 3x BBB+ Enhances earn
Slide 16: Significant headroom provides capacity for growth
Significant headroom provides capacity for growth Net debt / EBITDA (period end) 100% 10x Fixed / 8x hedged(1,2) 6x 10.1x 4x 7.9x 7.1x 5.1x 5.1x 2x - FY21 FY22 SUPR Primary 1 FY23 FY24 FY25 4.8% #405268 Average debt cost(2) Loan to Value 50% 40% 30% 20% £350m 34% 37% 37% 31% Liquidity 10% 19% headro
Slide 17: Summary
Summary Delivered Improved Debt Well Positioned Material Cost Maturity for Growth Reductions SUPR Primary 1 #405268 Target <9.0% EPRA cost Broadened our investor Strategic joint venture and ratio base and improved maturity refinancings provide by c.2 years c.£350m of liquidity 17
Slide 18: Grocery Market
Grocery Market SUPR Primary 1 #405268 18
Slide 19: Consistent growth in the UK grocery market
Consistent growth in the UK grocery market Consistent growth: CAGR of 4.3% p.a. since IPO 300 +40% 278 Since IPO 270 250 259 252 238 217 200 208 209 189 192 185 SUPR Primary 1 Sales (£bn) 150 #405268 100 50 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Source: IGD Grocery market sales dat
Slide 20: UK supermarkets: scale, recovery and growth
UK supermarkets: scale, recovery and growth Operators winning Operators showing Discounters continue through scale signs of recovery to pursue growth £1.6bn(5) 2-year plan to LFL sales +5.1%(1) LFL sales +3.9%(3) expand UK store estate LFL sales +4.7%(2) SUPR Primary 1 -0.2%(4) LFL sales To invest £
Slide 21: Discounters continue to make headlines
Discounters continue to make headlines Growth in sales by channel 30% 26% 25% 20% SUPR Primary 1 15% #405268 13% 10% 9% 5% 0% Convenience Large format Discount % Change in sales Source: IGD, UK Grocery Market Data. 1 January 2022 to 31 Dec 2024 actual, 1 January 2025 to 31 December 2025 forecasted 2
Slide 22: Large format stores growing through existing space
Large format stores growing through existing space Growth in sales vs sales per square foot of space by channel 30% 26% 25% 20% LFL growth from existing store space SUPR Primary 1 15% #405268 13% 12% 10% 9% 5% 5% 4% 0% Convenience Large format Discount % Change in sales % Change in sales per square
Slide 23: Tesco spent a further c.£130m buying back large format stores
Tesco spent a further c.£130m buying back large format stores SUPR Disposal +7% Above Book Value(2) Southwark Congleton Newmarket £44m £21m £64m SUPR Primary 1 #405268 5.7% 12yrs 7.0% 7yrs 5.2% 11yrs NIY(1) WAULT NIY(1) WAULT NIY(1) WAULT Demonstrating strategic importance of large format stores 1)
Slide 24: Market evidence providing upwards pressure on rents
Market evidence providing upwards pressure on rents SUPR Wantage Homebase conversions 3 lease renewals Lease renewal New foodstores SUPR Primary 1 #405268 15-year RPI linked leases 25-year inflation linked lease c.25 of 500 stores acquired Sainsbury’s and M&S paying +13% Valuer’s ERV 4.5% NIY(2) ren
Slide 25: Portfolio
Portfolio SUPR Primary 1 #405268 25
Slide 26: Portfolio let to leading supermarket operators
Portfolio let to leading supermarket operators £1.7bn 84 5.9% 93% Portfolio Supermarkets Net Initial Omnichannel value Yield stores(1) Exposure by value 44% SUPR Primary 1 #405268 31% 6% 5% 4% 2% 1% 1% Map locations are Non-grocery 7% indicative only. Inclusive of post balance sheet events & account
Slide 27: Generating value through active management
Generating value through active management Regearing 3 leases at Active reletting of two Attractive development 13% above Valuer's ERV Homebase vacancies Tesco, Bristol Sainsbury’s, Bangor SUPR Owned Site Discount Operator SUPR Primary 1 #405268 Former Homebase unit 8% capital value increase 10% cap
Slide 28: Investment market
Investment market SUPR Primary 1 #405268 28
Slide 29: Supermarket yields present buying opportunity
Supermarket yields present buying opportunity Timeline of Property Yields 8.0% 7.0% 6.3% MSCI Supermarkets(1) 6.0% 5.9% Net Initial Yield (%) SUPR NIY(1) 5.0% 5.0% MSCI All Property(1) 4.0% 3.0% 2.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 30: Supermarket investment is a liquid market
Supermarket investment is a liquid market Asda Torquay Sainsbury’s Wantage Tesco Ashford £13m £38m £54m NIY 7.3% NIY 4.5% NIY 7.0%(1) WAULT 12 yrs WAULT 25 yrs WAULT 9 yrs Purchaser Purchaser Purchaser Sainsbury’s Halifax Tesco Bracknell Sainsbury’s Huddersfield £43m £50m £50m NIY 6.1% NIY 6.2% NIY
Slide 31: Recycling capital into earnings accretive opportunities
Recycling capital into earnings accretive opportunities Tesco Ashford Investment characteristics Acquired July 2025 Strong trading 9-year WAULT 7.0% Omnichannel NIY(1) Annual RPI (0% - 5%) Inflation-linked Store profile SUPR Primary 1 #405268 Q1 14 Trading density Delivery vans Instore sales C&C 93k
Slide 32: Scaling through strategic JV targeting higher yielding assets
Scaling through strategic JV targeting higher yielding assets Rationale for Joint Ventures SUPR / Blue Owl JV £403m +3% Financial flexibility Gross asset value(1) Above book value(2) Releasing capital for accretive deployment £1.2m p.a. +£200m Management fee(3) Net proceeds(1) Scale through third pa
Slide 33: Earnings accretive pipeline opportunities
Earnings accretive pipeline opportunities Higher yielding Private equity New sale & Strategy Smaller format(1) investment grade backed operators leasebacks (France) Operator Net Initial Yield 6.0% - 7.0% 6.5% - 7.5% 6.0% - 6.5% 6.0% - 6.5% Lease Term 8 - 12yrs 20 - 25yrs 12yrs 10 - 15yrs Credit stre
Slide 34: Outlook
Outlook Cost Efficient Attractive Enhance Platform Pipeline Earnings SUPR Primary 1 #405268 High calibre team of sector Accretive opportunities to Targeting a fully covered specialists deploy capital and growing divided 34
Slide 35: Q&A
Q&A SUPR Primary 1 #405268 Photo: Sainsbury’s, Ashford 35
Slide 36: EPRA Earnings
EPRA Earnings Twelve months to Twelve months to Proportionally consolidated basis 30-Jun-25 30-Jun-24 £m £m Net rental income 115.1 107.2 Management fees 0.3 - Administrative & other expenses(1) (13.9) (15.2) Net finance expense(2) (27.3) (16.2) SUPR Primary 1 EPRA earnings #405268 74.2 75.8 Gross t
Slide 37: EPRA NTA
EPRA NTA As at As at Proportionally consolidated basis 30-June-25 30-June-24 £m £m Portfolio valuation(1) 1,625 1,776 Bank borrowings (604) (694) Cash 101 39 Other net liabilities SUPR Primary 1 (34) (36) #405268 EPRA net tangible assets 1,088 1,085 EPRA NTA per share 87.1 pence 87.0 pence Loan to v
Slide 38: A year of further sustainability progress
A year of further sustainability progress Pillar 1 Pillar 2 Pillar 3 Climate & Tenant & Responsible Environment Community Business 25% reduction in Scope 3 Nature Day Pilot Event Silver and Most Improved emissions(1) with Tesco EPRA sBPR Awards Climate Transition Plan 72% employees involved UN Globa
Slide 39: Progress on our climate transition
Progress on our climate transition First Climate Transition Plan published Committed to reaching Net Zero GHG emissions by 2050 Tenant led investment in energy efficiency improvements Sainsbury’s Cheltenham Tesco Prescot SUPR Primary 1 Tesco Bradley Stoke #405268 Refrigeration Heating system Carpark
Slide 40: Important Information
Important Information THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED, COPIED OR PUBLISHED (IN WHOLE OR IN PART) TO ANY OTHER PERSON FOR ANY PURPOSE. ANY RECIPIENT OF THIS PRESENTATION AGREES TO KEEP PERMANE
Slide 41: Important Information
Important Information The information contained in this presentation has not been independently verified by the Company, or any other person, and some of the information is still in draft form. No representation, warranty or undertaking, express or implied, is made by the Company or any of its advis
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